Insurance Archives - Adishian Law

Employment practices liability insurance (EPLI) is practically a necessity for a business of any size in California. Employment practices liability insurance can reduce the risks associated with employee lawsuits in California. It is important to understand your employment practices liability insurance policy thoroughly before buying it.

Where the law is not clear, or you are in an area with a lot of litigation, that often translates into financial risk in the form of litigation costs. One way to mitigate the risk is to obtain insurance.

For medium to larger employers, a good employment practices liability insurance (“EPLI”) should be considered with the advice of your insurance agent and legal counsel. There are a lot of provisions to reviews, some of the critical ones are:

Choice of counsel: This is very important. Do you get to pick or the insurance company?
Deductible/Retention: How much is it?
Duty to Defend: What triggers the insurance company’s obligation to defend the claim?
Costs of Defense: Is it total cost, or just a fixed dollar sum?
Liability Coverage: What is covered? What is not covered (exclusions)? What is the cap?

California employers should review their EPLI coverage on a regular basis with an experienced employment lawyer and insurance agent on a recurring basis.

About Adishian Law Group, P.C.

About Adishian Law Group, P.C. Adishian Law Group (https://adishianlaw.com) is a California law firm with a statewide practice in the areas of Corporate law, Employment law, Real Estate law and Mediation Services. As of December 2016, the firm has represented corporate and individual clients located across 22 California counties, 13 States outside of California and 10 foreign countries in over 520 legal matters. Adishianlaw.com is one of the oldest continually operating law firm websites on the Internet. The firm serves its clientele via three offices located in the major business hubs of El Segundo, Palo Alto and San Francisco.

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Insurance broker fraud unfortunately happens. Insurance broker fraud can occur when a broker sells you a product different that what you were promised. Insurance broker fraud also occurs when the individual or brokerage is not licensed to sell the particular type of insurance. Similar to our post on Contractors, this post suggest some steps to protect yourself from insurance broker fraud.

“With friends like these”. We recently handled an insurance broker fraud case where the clients had “friends” who represented themselves as legitimate insurance brokers for a large, national company. Persuaded by these “friends,” the clients cashed out existing investments and bought the new policies – relying on representations that these would be suitable and our clients would pay a one-time premium. Yet, a year after paying the initial premium (a six-figure sum), our clients received invoices from the insurance carrier demanding additional, costly annual payments that had never been disclosed. These brokers got the commissions, and our clients were stuck in unsuitable policies that they could not afford. If our clients did not continue to pay, they would lose all their money previously paid. When they asked their “friends” for help, the “friends” said that our clients could cancel the policies, again resulting in a total capital loss. That’s when we got the call.

Always Check Credentials and Licenses. During our investigation we discovered, of the broker and sales reps involved, two were not even licensed to sell life insurance from the carrier during the time period when the policies were marketed and sold, while the third was not licensed at all! Similar to real estate brokers and licensees, the State of California provides a website where you can check an insurance broker’s or salesperson’s license status here.

About Adishian Law Group, P.C.

Adishian Law Group (https://adishianlaw.com) is a California law firm with a statewide practice in the areas of Corporate law, Employment law, Real Estate law and Mediation Services. As of November 2015, the firm has represented corporate and individual clients located across 22 California counties, 13 States outside of California and 9 foreign countries in over 480 legal matters. Adishianlaw.com is one of the oldest continually operating law firm websites on the Internet. The firm serves its clientele via three offices located in the major business hubs of El Segundo, Palo Alto and San Francisco.

For more information about this article, contact Chris Adishian:

If you are an entrepreneur, you need to understand risk management and Insurance. Risk management and insurance knowledge is essential for any business owner, asset owner or executive charged with running the enterprise.

Are you a small business? These days that is generally viewed as any business below $50M in annual revenue. Are you insured? The answer is always YES. The question is how…

If you have not purchased insurance, then you are “self-insured” – essentially relying on a combination of faith, your business cash flow and assets, and your personal cash flow and assets. Once you have a business of any size, it is wise to defend that business and cash flow with a combination of law and insurance. The foundation of a long term successful business is growing, recurring cash flows. Your cash flow cannot grow if it is always paying liabilities, and it won’t recur if one of the liabilities put you out of business.

Two components of your business advisory team should be a solid business lawyer and an experienced commercial insurance agent.

About Adishian Law Group, P.C.

For more information about this article, contact Chris Adishian: